IFA is a boutique Family Office with over 25 years experience in Financial Investing.
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INTERNATIONAL TAX All tax advice is combined with investment advice in our Family Office. International Family Advisory assist in reducing Wealth Tax - Capital Gains - Income tax – Inheritance taxes – Gifts tax – Social Security costs – Corporation tax – Withholding Taxes – and Residence Advice We advise on the UK and French tax systems – including French wealth tax. In conjunction with the Maltese and Cypriot tax systems. All tax advice is combined with investment advice. The taxation of corporations and individuals have has been subject to considerable changes since the Great Financial Crisis of 2008. Prior to that time there were all sorts of loop holes and constructions which were exploited by those that knew about them. Due to the huge deficits that governments were forced to take to prop up the banking system, and in re- simulating their economies, the increase in taxes and the more stringent application of the law, plus new measures introduced, have all had a marked effect. Various anomalies between countries have also been closed down. An example of this is the tax of gains on property in the UK of non-residents and non-residents companies, where before they were not taxed. In addition the non-disclosure of assets or profits became a major issue and starting in the USA the FACTA rules were introduced. The penalties for non-disclosure are draconian for US citizens. Much to the surprise of other nationals they found that banks and financial institutions were also asking them for disclosure under FACTA. Even in countries which would have been considered friendly the international organisations were demanding conformity. Swiss banks were asking US clients to take their bank accounts away! Now the European rules under the Common Reporting Standards – CRS – have come into force on a stricter basis than FACTA. This means that as one banker put it – there is nowhere to hide these days. Probably quite right since a legal route was always the best. The automatic disclosure under CRS means that the tax payer would be subject to the rules and penalties of their country of residence, and nationality in the case of US citizens. Globalisation gave large international corporations the opportunity to use countries that where giving tax advantages to virtually eliminate tax on overseas profits or reduce them considerably. These practices are being increasingly criticized both publicly and in the courts. The moral high ground is being applied and governments are after all that they can gather in. In Europe, countries such as Ireland, Luxembourg and the Netherlands have all been subject to criticism and exposure by the EU. Deals have been struck by these international corporations with tax authorities to satisfy the authorities and governments. This will be an ongoing situation, and the EU is intent upon imposing a level playing field on member countries, but that will be resisted by certain countries where on their entry into the EU such arrangements were firmly agreed. It will interesting to see under Brexit what approach the UK government takes to all this. With the USA leading the way perhaps every country will race to the bottom at 15%! If that becomes the case tax free haven corporations are going to come under close scrutiny as to their value. The lower rates of corporation tax applied in various countries are referred to as “the race to the bottom”. One has to ask the question – if Trump lowers the corporation tax to 15% in the USA is the States joining the race? When one considers the LLC corporations in 50 states, which are to the advantage of foreign investors, is the USA becoming a tax haven or reduced tax environment, but applying a double standard when applied to its own citizens and corporations? This does not mean that there are no longer methods to reduce the impact of tax of one’s affairs. But they have to be carefully considered and constructed. As one English judge put it – only a fool arranges his affairs so as to pay the maximum amount of tax. We have always told clients to pay some taxes somewhere…Actually today it is not even necessary to say that since taxes are going to be deducted like it or not! Automatic deduction at source is here to stay, even on salaries and overall annual assessments. IFA can be of help in many areas of taxation.
For further information contact : IFA International Family Advisory Ltd. - Tel : +356 99725151 Email: email@example.com